Major Asian chipmakers contributed to the rally on Wall Street following optimistic remarks by Nvidia CEO Jensen Huang regarding the company's prospects. At the Goldman Sachs Communacopia + Technology Conference held in San Francisco, Huang elaborated on Nvidia's competitive advantages, its competitors, and the supply chain dynamics. Nvidia's stock surged 8% on Wednesday after Huang characterized the demand for their products as "so great" that it felt "really emotional for people. " "We have a lot of people relying on us, and everybody's counting on us, " Huang commented. This optimistic sentiment prompted a rise in stocks associated with Nvidia's suppliers and other semiconductor firms across Asia. Taiwan Semiconductor Manufacturing Corp, a prominent contract chip manufacturer, saw its shares rise by as much as 5%, while Hon Hai Precision Industry, better known as Foxconn, gained over 4%. Huang attributed Nvidia's success to TSMC, acknowledging it as "the world's best" supplier by a significant margin. Japanese chip-related stocks also experienced considerable gains, with semiconductor testing equipment supplier Advantest increasing by over 9%.

Tokyo Electron and Renesas Electronics rose by 4. 6% and 3%, respectively. SoftBank Group, a major stakeholder in chip designer Arm, surged more than 7% as well. Investor optimism spread to South Korea too, boosting shares of Samsung Electronics and SK Hynix — the world's two largest memory chip manufacturers — which rose by 2% and 7. 5%, respectively. While Nvidia currently leads the AI chip market, Huang emphasized that the artificial intelligence landscape extends beyond just semiconductors. "The first thing to remember is that AI isn't solely about a chip; it concerns infrastructure, " Huang stated, highlighting that today’s computing complexity far exceeds merely manufacturing a chip and incorporating it into a computer, "which feels very much like the 1990s. " He further clarified that Nvidia is embedded within an ecosystem that encompasses cloud service providers and developers in this emerging wave of GenAI. When discussing the geopolitical challenges in Asia, Huang mentioned that the supply chain is "really diverse and interconnected. " He expressed confidence that Nvidia could adapt its operations by relocating manufacturing if necessary. Despite a 10% decline earlier this month that erased nearly $300 billion from its market capitalization, Nvidia’s shares have surged an astounding 136% this year amid ongoing investor enthusiasm.